With a rapid growth in population, the cost of basic essentials are increasing accordingly. One essential we’re all familiar with is food. This is something that we’re all familiar with, since India is primarily an agricultural country. It’s not an overstatement to say that the economy of our country thrives on the well-being of the agricultural sector. Unfortunately, we’ve been seeing a decline in the number of people involving themselves in the agricultural business. This phenomenon can be attributed to many reasons such as rapid urbanisation, lack of interest amongst youth etc.
Apart from these, the other major reason would be the humongous increase in the prices of agricultural land. To buy land, farm and get a profit out of it can take several years, so this isn’t a get rich quick scheme by any means.
The land prices have escalated astronomically, thanks to the ploy of a few real-estate agencies. But if you’re someone looking to buy agricultural land, it’s not entirely a hopeless endeavour. A number of banks and NBFCs, have made the process much easier.
Tips to Follow While Applying a Loan for Land Purchase
Here are a few tips which can help a great deal if you’re thinking of getting started to apply for a land purchase loan
- Thorough knowledge of land loan interest rates: The primary step would be to get to know the interest rates on the loan amount, as they can have major impact on your purse. Some institutions follow the vile habit levying hidden charges, which will further add to the already existing burden. To avoid this, it is important to clearly know all the details pertaining to the interest rates.
- Eligibility criteria: Before taking the plunge, it is important to check whether we fulfill the eligibility criteria or not. For this purpose, use a loan calculator for land purchase you can find online. Enter in basic details like location, DOB, tenure preferred, Monthly income (Net), Other source of income, and Present EMI commitments. The calculator will deliver the interest and the end amount you’ll have to pay.
- Assessment of EMI: The Equated monthly installment or EMI is a boon for those who cannot make lump sum payments. The EMI should be comfortable us to pay and stay within the plausible limits. This is easier to assess with a land loan EMI calculator.
- Documents required: Knowing the documents that needs to be submitted can avoid all any last minute confusions that might occur otherwise.
- Application form
- Identity Proof (Voter’s ID/Aadhaar card/PAN card etc)
- Address Proof (Passport/Voter’s ID/Driving license)
- Statements from bank
- Details pertaining to the income (Form 16/Salary slips)
The above mentioned tips should be useful if you are looking for a land purchase loan. Choosing a bank or NBFC that promise immediate approval of loans, fast transfer of funds, Very low rate of interest, and accessibility to the account online should help the process move along that much smoother.
One of the benefits of the internet is the fact that some institutions allow you to do all of this entirely online. A simpler application process that takes less time, while also being clearer, is something that we can all appreciate, with our daily busy schedules.
If you’re looking to invest in agriculture as a business, then this information should be useful to you get started. Not only are you making a business for yourself, a career in agriculture also means that you’re helping provide essential food to the masses. That’s something we all need.